{"id":693034,"date":"2025-07-24T14:10:34","date_gmt":"2025-07-24T14:10:34","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?p=693034"},"modified":"2026-01-22T07:43:58","modified_gmt":"2026-01-22T07:43:58","slug":"automotive-oems-europe-b2b-strategies","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/gb-en\/insights\/expert-perspectives\/automotive-oems-europe-b2b-strategies\/","title":{"rendered":"Revving Up: What can automotive OEMs do to navigate Europe&#8217;s dynamic B2B car market?"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1>Revving Up: What can automotive OEMs do to navigate Europe&#8217;s dynamic B2B car market?<\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2022\/07\/ashish.jpg?w=200&amp;quality=10\" alt=\"\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Ashish Padhi<\/h5><h5 class=\"blog-date\">Jul 24, 2025<\/h5><\/div><\/div><div class=\"brand-image\"> <\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/gb-en\/?p=693034\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/gb-en\/?p=693034\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<h3 class=\"wp-block-heading\" id=\"h-the-european-b2b-passenger-car-market-is-undergoing-a-seismic-shift-here-we-delve-into-the-transformative-trends-shaping-this-market-from-the-allure-of-flexible-leasing-to-the-surge-in-electrification-and-how-oems-can-successfully-adapt-to-this-dynamic-landscape\">The European B2B passenger car market is undergoing a seismic shift. Here we delve into the transformative trends shaping this market \u2013 from the allure of flexible leasing to the surge in electrification \u2013 and how OEMs can successfully adapt to this dynamic landscape.<\/h3>\n\n\n\n<p>As the European automotive landscape undergoes a seismic shift, Business to Business (B2B) passenger car sales are emerging as a critical growth engine for Original Equipment Manufacturers (OEMs). With true fleet registrations (all registrations by legal entities\/companies) now accounting for over 30% of new car sales in most EU markets<sup>1<\/sup>, the B2B segment is not just important \u2013 it is the next battleground for market dominance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-complexity-behind-b2b-sales\">The Complexity Behind B2B Sales<\/h2>\n\n\n\n<p>Unlike Business to Customer (B2C), B2B sales are a multi-layered ecosystem involving Original Equipment Manufacturers (OEMs), leasing companies, dealers, and a diverse range of customers \u2013 from small and medium sized enterprises (SMEs) to large corporate and public institutions. This complexity demands tailored strategies, robust digital infrastructure, and a deep understanding of customer needs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"621\" height=\"310\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P11.jpg?w=621\" alt=\"\" class=\"wp-image-693186\" style=\"width:743px;height:auto\" srcset=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P11.jpg 621w, https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P11.jpg?resize=300,150 300w\" sizes=\"auto, (max-width: 621px) 100vw, 621px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-market-momentum-growth-and-electrification\">Market momentum: growth and electrification<\/h2>\n\n\n\n<p>The European B2B market is on a steady upward trajectory. In the EU5 (UK, France, Germany, Spain, and Italy) true fleet registrations are projected to grow from three million in 2024 to 3.2 million by 2029.<\/p>\n\n\n\n<p>Electrification is another defining trend. More than 40% of the company car market is projected to be electric by 2029, driven by regulatory pressures to reduce emissions, and supported by Battery Electric Vehicle (BEV) tax incentives. These factors are particularly influential in segments where there is price parity between Internal Combustion Engine (ICE) and BEV alternatives.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"621\" height=\"288\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P12.jpg?w=621\" alt=\"\" class=\"wp-image-693187\" style=\"width:743px;height:auto\" srcset=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P12.jpg 621w, https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P12.jpg?resize=300,139 300w\" sizes=\"auto, (max-width: 621px) 100vw, 621px\" \/><\/figure>\n\n\n\n<p>Electrification is another defining trend. More than 40% of the company car market is projected to be electric by 2029, driven by regulatory pressures to reduce emissions, and supported by Battery Electric Vehicle (BEV) tax incentives. These factors are particularly influential in segments where there is price parity between Internal Combustion Engine (ICE) and BEV alternatives.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"656\" height=\"311\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P13.jpg\" alt=\"\" class=\"wp-image-693188\" style=\"width:743px;height:auto\" srcset=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P13.jpg 656w, https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P13.jpg?resize=300,142 300w\" sizes=\"auto, (max-width: 656px) 100vw, 656px\" \/><\/figure>\n\n\n\n<p>However, there are challenges as well. Unpredictable residual values in the used electric vehicle market are threatening leasing companies&#8217; profits, leading them to seek deeper discounts from OEMs. Competition from Chinese OEMs, tariffs, and trade instability are further squeezing OEMs\u2019 profit margins. Despite these challenges, the B2B fleet market remains a key growth area for OEMs and should be prioritised as the industry evolves.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-driving-the-shift\">What\u2019s driving the shift?<\/h2>\n\n\n\n<p>Several forces are converging to reshape the B2B landscape:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Cost efficiency<\/strong>: Fleet deals offer better Total Cost of Ownership (TCO) through bulk discounts, tax benefits, and predictable maintenance costs.<\/li>\n\n\n\n<li><strong>Flexibility<\/strong>: Leasing and subscription models provide adaptable contracts and access to a wider range of vehicles.<\/li>\n\n\n\n<li><strong>Sustainability<\/strong>: Regulatory pressure and corporate ESG goals are accelerating EV adoption.<\/li>\n\n\n\n<li><strong>Digitalisation<\/strong>: Fleet managers demand seamless digital experiences -from vehicle configuration to telematics and aftersales.<\/li>\n<\/ol>\n\n\n\n<p>On top of this is the major force of shifting customer expectations. According to research by Capgemini\u2019s automotive team in Germany:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Flexibility is king:<\/strong> 78% of leasing companies cite flexibility in vehicle choice and 76% in contract duration as top customer needs.<\/li>\n\n\n\n<li><strong>Customisation is rising<\/strong>: 71% of managers expect growing demand for individual service modules \u2013 like cafeteria-style leasing packages or menu of options.<\/li>\n\n\n\n<li><strong>Alternative mobility is mainstream<\/strong>: 78% of companies now offer public transport allowances, bike leases, or cash-for-car schemes.<\/li>\n\n\n\n<li><strong>Subscriptions are gaining ground<\/strong>: 54% of fleet managers already use or plan to use subscriptions, with 40% viewing them as a viable alternative to long-term leasing.<\/li>\n<\/ul>\n\n\n\n<p><strong>Major perceived differences in customer needs between the EU markets, based on a survey of LeaseCo managers<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"573\" height=\"387\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P14.jpg\" alt=\"\" class=\"wp-image-693200\" style=\"width:743px;height:auto\" srcset=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P14.jpg 573w, https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/P14.jpg?resize=300,203 300w\" sizes=\"auto, (max-width: 573px) 100vw, 573px\" \/><\/figure>\n\n\n\n<p>These trends reflect a broader shift in consumer behaviour \u2013 away from ownership and toward access, convenience, and personalisation. These factors are also driving a change in preferred financing products. Operational leasing and subscriptions are on the rise.<\/p>\n\n\n\n<p>Operational leasing is the fastest-growing financing method, expected to grow by 17%, reaching over 1.1 million by 2028<sup>1<\/sup>. This growth is fuelled by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>EV Affordability<\/strong>: Leasing helps align monthly EV costs with ICE vehicles.<\/li>\n\n\n\n<li><strong>Convenience<\/strong>: All-inclusive packages simplify fleet management.<\/li>\n\n\n\n<li><strong>Predictability<\/strong>: Fixed costs appeal to CFOs and procurement teams.<\/li>\n<\/ul>\n\n\n\n<p>As for subscriptions, a 2023 survey by Dataforce shows that 40% of fleet managers view subscription models as alternatives to long-term leasing, while 33% see them as complementary.<\/p>\n\n\n\n<p>Meanwhile, LeaseCos are consolidating and evolving. They are exploring ultra-short-term rentals to compete with subscription providers and meet rising expectations for flexibility. AutoFintechs are also entering the fray, with a projected 9.2% compound annual growth rate through 2031<sup>1<\/sup>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-can-oems-benefit-from-this-opportunity\">How can OEMs benefit from this opportunity?<\/h2>\n\n\n\n<p>To thrive in this evolving market, OEMs must activate four key profitability levers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Deploy<\/strong> low-depreciation models to reduce residual value risk.<\/li>\n\n\n\n<li><strong>Offer <\/strong>modular service packages (menu systems) to capture flexibility premiums.<\/li>\n\n\n\n<li><strong>Manage <\/strong>aftersales and uptime guarantees to generate recurring revenue and monetise connected services for fleet management.<\/li>\n\n\n\n<li><strong>Recoup <\/strong>value through second-life leasing and resale optimisation.<\/li>\n<\/ul>\n\n\n\n<p>Additionally, OEMs must adapt their B2B sales models to offer flexible contracts and customisable service modules. Partnerships with finance and leasing companies should be made more agile to provide innovative financial solutions.<\/p>\n\n\n\n<p>Moreover, enhancing customer experience with digital tools like fleet configurators, fleet management systems and data-driven personalisation is crucial. This approach builds direct customer relationships, boosts loyalty, and unlocks strategic opportunities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-capgemini-can-help\">How Capgemini can help<\/h2>\n\n\n\n<p>Capgemini is well-placed to assist OEMs in managing this complex landscape. Our end-to-end fleet-specific transformation framework includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Vision and strategy<\/strong>: We have helped German and Japanese OEMs set goals and target customer segments for fleet management, focusing on flexibility and efficiency.<\/li>\n\n\n\n<li><strong>Digital infrastructure<\/strong>: We assisted Swedish, Japanese, Italian, and German OEMs in implementing CRM systems, pricing engines, and telematics to support low-depreciation models for leasing and resale.<\/li>\n\n\n\n<li><strong>Sales enablement<\/strong>: We have supported Japanese OEMs in developing scalable B2B sales models, offering modular service packages to maximise flexibility premiums.<\/li>\n\n\n\n<li><strong>Customer experience<\/strong>: We are experienced in helping global OEMs create seamless customer journeys across awareness, purchase, and aftersales, managing uptime guarantees for recurring revenue.<\/li>\n<\/ul>\n\n\n\n<p>Whether you aim to expand your leasing operations, digitise your B2B sales, or accelerate the adoption of electric vehicles, Capgemini is ready as your business and technology transformation partner to help you navigate the next era of mobility.<\/p>\n\n\n\n<p>Get in touch with our experts to find out how we can tackle your specific business challenge.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-wrapper-people-slider section section--expert-slider wrapper-people-slider undefined\"><div class=\"container\"><div class=\"content-title\"><h2 data-maxlength=\"34\" class=\"people-heading-title\">Meet our author<\/h2><\/div><\/div><div class=\"slider slider-boxed\"><div class=\"container\"><div class=\"slider-window\"><div class=\"slider-list\">\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2022\/07\/ashish.jpg\" alt=\"Ashish Padhi\"\/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/uk.linkedin.com\/in\/ashishpadhi\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Ashish Padhi<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>Managing Consultant, Automotive UK<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/uk.linkedin.com\/in\/ashishpadhi\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"people-info\">Ashish is a Managing Consultant in the UK Automotive team and has more than 18 years of experience in leading strategy and operations projects spanning across automotive and Formula One. He has supported multiple electric vehicle start-ups and established manufacturers in developing EV and hydrogen vehicle business model and product strategy.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\n\n\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/07\/Joshua.jpg\" alt=\"Joshua\"\/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Joshua Quarmby<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>Senior Consultant, Automotive UK<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"people-info\">Joshua is a Senior Consultant in the UK Automotive team with experience designing scalable BI solutions across the automotive value chain. Joshua also supports delivering transformation projects within the UK and Europe to drive operational efficiency, customer-centricity, and digital innovation.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div><\/div><\/div><div class=\"slider-nav\"><button class=\"slider-prev inactive\" aria-label=\"Slider-previous\" tabindex=\"-1\"><\/button><ul class=\"slider-paginator\"><\/ul><button class=\"slider-next\" aria-label=\"Slider-next\"><\/button><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-11 col-lg-10 offset-md-1 offset-lg-1\"><div class=\"article-text article-quote-text\">\n<p>(Source: 1. <a href=\"https:\/\/www.dataforce.de\/en\/leasing-study-eu5-2023\/\">Leasing\/Long-Term Rental Study EU-5 2023-2024, Dataforce<\/a>)<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>The European B2B passenger car market is undergoing a seismic shift. Here we delve into the transformative trends shaping this market \u2013 from the allure of flexible leasing to the surge in electrification \u2013 and how OEMs can successfully adapt to this dynamic landscape.<\/p>\n","protected":false},"author":301,"featured_media":693226,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"","cg_seo_hreflang_x_default_relation":"","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"cg_dt_link_disabled":false,"_yoast_wpseo_primary_brand":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","featured_focal_points":""},"categories":[4],"tags":[],"brand":[],"service":[],"industry":[25],"partners":[],"blog-topic":[614],"content-group":[],"class_list":["post-693034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people","industry-automotive","blog-topic-travel-and-transport"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - 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